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EU Approves Provisional Rules to Improve Gig Economy Workers' Rights

The new rules could reclassify up to 5.5 million gig workers as employees, granting them full employment benefits.

Overview

  • The European Union has provisionally approved rules aimed at improving protections and benefits for gig economy workers.
  • The rules could reclassify up to 5.5 million people, currently classified as gig workers, as employees entitled to full employment benefits.
  • Platforms will be deemed as employers if they meet at least two criteria, such as limiting pay electronically, supervising work performance, controlling working conditions, or dictating a worker’s appearance and conduct.
  • The rules also restrict the use of algorithms to manage gig workers, requiring human oversight for decisions such as dismissal or account suspension.
  • After ratification, member states will have two years to transpose the rules into their local laws.